Interest rates have gone up again
Feb 5th 2008, 5:04 am
#17
has lost The Game
Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Re: Interest rates have gone up again
Yes, the pundits are already suggesting that this won't be the last rise.
Luckily we have a boat load of tax cuts that the government promised us to get elected to come. Maybe these will help to keep a lid on inflation...
S
Feb 5th 2008, 5:06 am
#19
has lost The Game
Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Feb 5th 2008, 5:12 am
#20
BE Enthusiast
Thread Starter
Joined: Jan 2008
Location: Bris
Posts: 564
Re: Interest rates have gone up again
SWEET! 1 AUD currently buys you around 0.46 GBP.
Keep spending Australia.
On ya Howard.
Keep spending Australia.
On ya Howard.
Feb 5th 2008, 5:17 am
#21
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Interest rates have gone up again
Tax is too high in Australia so these cuts are needed. They may have an effect on inflation but I don't care. I love high interest rates but hate high taxes.
Feb 5th 2008, 5:19 am
#22
Australia's Doorman
Joined: Jan 2005
Location: The Shoalhaven, New South Wales, Australia
Posts: 11,056
Re: Interest rates have gone up again
Feb 5th 2008, 5:25 am
#23
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Interest rates have gone up again
Feb 5th 2008, 6:49 am
#25
Lost in BE Cyberspace
Joined: Sep 2007
Location: Canberra
Posts: 8,378
Re: Interest rates have gone up again
Another who (thank heavens) owes nothing, so good news for us self funded retirees.
Feb 5th 2008, 7:56 am
#26
Lost in BE Cyberspace
Joined: May 2004
Location: Birkdale QLD
Posts: 7,642
Re: Interest rates have gone up again
Well, not just stealth taxes, but things like the new, first time homebuyers savings account tax 'cut', that'll keep the money out of the economy.
Its all smoke and mirrors
JTL
Feb 5th 2008, 8:18 am
#27
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Joined: Apr 2006
Location: Upper kedron
Posts: 409
Re: Interest rates have gone up again
Easy to say for all us poms who came over when the exchange rate was good but spare a thought for all australian who are now struggling to pay mortgages. Your comments are rather patronising dont you think?
Raven
Raven
Feb 5th 2008, 10:28 am
#28
has lost The Game
Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Re: Interest rates have gone up again
Maybe, maybe not. Prudent financial planning would have involved factoring in potential rate rises when assessing affordability for a mortgage.
I'm not entirely sure that I have a great deal of sympathy for people that have mortgaged themselves to the maximum of their current ability to pay and then complain when the rates rise. This is how the American subprime debacle has started - people borrowing far more than they can realistically afford to repay.
S
Feb 5th 2008, 10:36 am
#29
BE Forum Addict
Joined: Apr 2007
Location: Brisbane, Australia
Posts: 3,521
Re: Interest rates have gone up again
Maybe, maybe not. Prudent financial planning would have involved factoring in potential rate rises when assessing affordability for a mortgage.
I'm not entirely sure that I have a great deal of sympathy for people that have mortgaged themselves to the maximum of their current ability to pay and then complain when the rates rise. This is how the American subprime debacle has started - people borrowing far more than they can realistically afford to repay.
S
I'm not entirely sure that I have a great deal of sympathy for people that have mortgaged themselves to the maximum of their current ability to pay and then complain when the rates rise. This is how the American subprime debacle has started - people borrowing far more than they can realistically afford to repay.
S
Feb 5th 2008, 11:24 am
#30
Lost in BE Cyberspace
Joined: May 2004
Location: Birkdale QLD
Posts: 7,642
Re: Interest rates have gone up again
I think the point is that banks should not be allowing them to borrow that much in the first place if it does not allow leeway for a few rate increases. Six times your household income is stretching it! I agree with what you say but not everyone has your fiscal nous and some responsbility must lie with the banks.
Then borrowing rates go up, and they can't pay the repayments. Now who is the villain? The banks!
Many many years ago, I took out a 95% mortgage in the UK, and was quite annoyed that the bank wouldn't give me quite as much as I needed to buy the house. (obviously took out a small loan from my Dad
). Looking back though, I was really lucky that house prices went up and interest rates didn't, because my repayments were like 50% of my monthly wage. I could survive cos I was a single guy on a good wage at the time.I'd hate to think how couples with kids survive, or why they would mortgage themselves to that level in the first place. But still they do...
JTL